HAWTHORNE, N.Y., May 11, 2005 (PRIMEZONE) -- SmartPros Ltd. (AMEX: PED), a leader in the field of accredited professional education and corporate training, today reported first quarter results for the period ended March 31, 2005.
For the three months ended March 31, 2005 compared to the three months ended March 31, 2004:
-- Revenues increased 28.4% to $2.85 million from $2.22 million.
-- As a percentage of revenue, operating expenses decreased to
55.3% from 61.1%.
-- Net income was $216,000, or $0.04 per share, compared to a
net loss of $7,360 in the first quarter of 2004.
-- Net cash generated by operating activities was $248,000
compared to $230,000.
As of March 31, 2005, the Company had approximately $6.92 million in cash and investments, working capital of $3.70 million and stockholders' equity of approximately $6.64 million.
Allen Greene, Vice Chairman and Chief Executive Officer of SmartPros, noted, "Our first quarter results reflect the ongoing success of our strategy to build our core business while remaining focused on controlling costs. We are particularly pleased with the uptrend we are seeing in year-over-year revenue growth and in overall profitability."
Continuing, Greene added, "Despite its strong organic growth, the Company remains committed to its goal of expanding into new verticals and markets through acquisitions. We continue to evaluate acquisition opportunities that are presented to us. We have specific criteria that must be met and are considering only those opportunities that best fit our needs."
SmartPros will host a teleconference this afternoon beginning at 4:15 p.m. Eastern, and invites all interested parties to join management in a discussion regarding the Company's financial results, corporate progression and other meaningful developments. The conference call can be accessed via telephone by dialing toll free 1-800-240-2134. A replay of the call will be available on the Company's Web site approximately one hour after the live broadcast at http://ir.smartpros.com. A copy of this news announcement is immediately accessible via http://ir.smartpros.com.
SMARTPROS LTD. AND SUBSIDIARY
Condensed Consolidated Balance Sheets
March 31, December 31,
2005 2004
(Unaudited)
--------------------------------- ----------- -----------
ASSETS
Current Assets:
Cash and cash equivalents $ 2,916,498 $ 1,756,991
Investment securities
available-for-sale 4,000,000 5,000,000
Accounts receivable, net
of allowance for
doubtful accounts of $71,000 1,068,525 985,259
Prepaid expenses and other
current assets 143,395 175,270
----------- -----------
Total Current Assets 8,128,418 7,917,520
----------- -----------
Property and equipment, net 570,708 544,176
Goodwill 53,434 53,434
Other intangible, net 2,387,267 2,482,653
Other assets, including
restricted cash of $150,000 150,000 167,196
----------- -----------
3,161,409 2,703,283
----------- -----------
Total Assets $11,289,827 $11,164,979
=========== ===========
LIABILITIES AND STOCK
HOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 292,936 $ 358,867
Accrued expenses 283,627 373,993
Current portion of capital
lease and equipment
financing obligations 50,400 56,119
Deferred revenue 3,802,676 3,741,466
----------- -----------
Total Current Liabilities 4,429,639 4,530,445
----------- -----------
Long-Term Liabilities:
Capital lease and equipment
financing obligations 53,671 64,020
Other liabilities 163,818 164,907
----------- -----------
Total Long-Term Liabilities 217,489 228,927
----------- -----------
Commitments and Contingencies
Stockholders' Equity:
Convertible preferred
stock, $.001 par value,
authorized 1,000,000 shares,
no shares issued and
outstanding -- --
Common stock, $.0001 par
value, authorized
30,000,000 shares,
5,140,545 issued and
5,082,539 outstanding 514 514
Common stock in treasury,
at cost - 58,006 shares (220,000) (220,000)
Additional paid-in capital 16,407,495 16,407,495
Accumulated (deficit) (9,238,810) (9,454,902)
----------- -----------
6,949,199 6,733,107
Deferred compensation (106,500) (127,500)
Note receivable from
stockholder (200,000) (200,000)
----------- -----------
Total Stockholders' Equity 6,642,699 6,405,607
----------- -----------
Total Liabilities and
Stockholders' Equity $11,289,827 $11,164,979
=========== ===========
SMARTPROS LTD. AND SUBSIDIARY
Condensed Consolidated Statements of Operations (Unaudited)
Three Months Ended
March 31,
--------------------------
2005 2004
--------------------------------- ----------- -----------
Net Revenues $ 2,848,951 $ 2,218,351
Cost of Revenues 1,082,709 853,474
----------- -----------
Gross Profit 1,766,242 1,364,877
----------- -----------
Operating Expenses:
Selling, general and
administrative 1,435,160 1,185,190
Depreciation and
amortization 141,243 170,971
----------- -----------
1,576,403 1,356,161
----------- -----------
Operating Income (Loss) 189,839 8,716
----------- -----------
Other Income (Expense):
Interest income 29,554 3,718
Interest expense (3,301) (19,794)
----------- -----------
26,253 (16,076)
----------- -----------
Income (loss) before
provision for income taxes 216,092 (7,360)
Provision for Income Taxes -- --
----------- -----------
Net Income (Loss) $ 216,092 $ (7,360)
=========== ===========
Net Income (Loss) Per
Common Share:
Basic net income (loss)
per common share $ 0.04 $-
=========== ===========
Diluted net income (loss)
per common share $ 0.04 $-
=========== ===========
Weighted Average Number
of Shares Outstanding
Basic 5,082,539 2,604,178
=========== ===========
Diluted 5,117,294 2,604,178
=========== ===========
About SmartPros Ltd.
Founded 1981, SmartPros Ltd. is an industry leader in the field of accredited professional education. Its products and services are primarily focused in the accredited professional areas of corporate accounting, financial management, public accounting, governmental and not-for-profit accounting, engineering, and ethics and compliance. SmartPros' customers include over half of Fortune 500 companies, as well as the major firms and associations in each of its professional markets. SmartPros provides education and content publishing and development services in a variety of media including Web, CD-ROM and video. Our subscription libraries feature hundreds of course titles and 1,000+ hours of accredited education. SmartPros' proprietary Professional Education Center (PEC) Learning Management System (LMS) offers enterprise distribution and administration of education content and information. In addition, SmartPros produces a popular news and information portal for accounting and finance professionals that services 300,000+ visitors and 100,000+ subscribers per month. Visit: www.smartpros.com.
Safe Harbor Statement
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements." Results reported within this press release should not be considered an indication of future performance. Except for any historical information, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve risks and uncertainties, including activities, events or developments that the Company expects, believes or anticipates will or may occur in the future. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in our filings with Securities and Exchange Commission.